2. PRDS® DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS (Page 2 of 2):
CHAPTER 2 OF TITLE 9 OF PART 4 OF DIVISION 3 OF THE CIVIL CODE
2079.13 As used in Sections 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a) “Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed
as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license
a listing is executed or an offer to purchase is obtained.
(b) “Associate licensee” means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of
Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the
broker’s agent in connection with acts requiring a real estate license and to function under the broker’s supervision in the capacity of an associate licensee.
The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee
owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by
the broker for whom the associate licensee functions.
(c) “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or
who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer”
includes vendee or lessee.
(d) “Dual agent” means an acting agent, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.
(e) “Listing agreement” means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or
obtain a buyer.
(f) “Listing agent” means a person who has obtained a listing of real property to act as an agent for compensation.
(g) “Listing price” is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.
(h) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(i) “Offer to purchase,” means a written contract executed by a buyer acting through a selling agent which becomes the contract for the sale of the real property upon
acceptance by the seller.
(j) “Real property” means any estate specified by subdivision (1) or (2) of Section 761 in property which constitutes or is improved with one to four dwelling units, any
leasehold in this type of property exceeding one year’s duration, and mobile homes, when offered for sale or sold through an agent pursuant to the authority
contained in Section 10131.6 of the Business and Professions Code.
(k) “Real property transaction” means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that
transaction, and includes a listing or an offer to purchase.
(l) “Sell”, “sale”, or “sold” refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller
and the buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold
exceeding one year’s duration.
(m) “Seller” means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who
receives an offer to purchase real property of which he or she is the owner from an agent of behalf of another. “Seller” includes both a vendor and a lessor.
(n) “Selling agent” means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real
property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller.
(o) “Subagent” means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However,
“subagent” does not include an associate licensee who is acting under the supervision of an agent in a real property transaction.
2079.14 Listing agents and selling agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except
as provided in subdivision (c), shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows:
(a) The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b) The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling
agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a).
(c) Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and
acknowledgment of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail
addressed to the seller at his or her last known address, in which case no signed acknowledgment of receipt is required.
(d) The selling agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer’s offer to purchase, except that if the offer to
purchase is not prepared by the selling agent, the selling agent shall present the disclosure form to the buyer not later than the next business day after the selling
agent receives the offer to purchase from the buyer.
2079.15 In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent, or an associate licensee acting for
an agent, shall set forth, sign,and date a written declaration of the facts of the refusal.
2079.17 (a) As soon as practicable, the selling agent shall disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the
buyer’s agent, exclusively as the seller’s agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to
purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent prior to or coincident withexecution of
that contract by the buyer and the seller, respectively.
(b) As soon as practicable, the listing agent shall disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the seller’s agent,
or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate
writing executed or acknowledged by the seller and the listing agent prior to or coincident with the execution of that contract by the seller.
(c) The confirmation required by subdivisions (a) and (b) shall be in the following form:
Example Only
____________________________________ is the agent of (check one): Example Only
_____________________________ is the agent of (check one):
(Name of Listing Agent) (Name of Selling Agent if not the same as the Listing Agent)
the seller exclusively; or both the buyer and the seller. the buyer exclusively; or the seller exclusively; or both the buyer and the
seller.
(d) The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14.
2079.18 No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction.
2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency
relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any
compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be
determinative of a particular relationship.
2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent’s employment, a specific form of agency relationship not specifically prohibited by this
article if the requirements of Section 2079.14 and Section 2079.17 are complied with.
2079.21 A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the
seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer.
This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
2079.22 Nothing in this article precludes a listing agent from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a
dual agent.
2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the
object of the agency with the written consent of the parties to the agency relationship.
2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associates licenses, subagents, and
employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or
for any breach of a fiduciary duty or a duty of disclosure.
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